Electric vehicle sales down 12% in November after festival-driven rush

Electric vehicle (EV) sales in India fell 12 per cent in November 2024 to 191,554 units, down from 219,021 units recorded in October, as the festival-driven surge subsided. However, on a year-on-year (Y-o-Y) basis, sales surged 31 per cent, compared to 145,197 units in November 2023, according to Vahan data from the Ministry of Road Transport and Highways (MoRTH).

 

The decline was evident across all EV segments, with two-wheelers (e2Ws), three-wheelers (e3Ws), and four-wheelers (e4Ws) witnessing month-on-month contractions ranging from 5 per cent to 25 per cent. The e4W segment experienced the sharpest drop, with sales plunging 25 per cent to 8,782 units in November from 11,587 units in October.

 

In the e2W category, which accounts for more than 60 per cent of total EV sales, volumes fell 15 per cent to 118,944 units in November, compared to 139,787 units in the previous month. Meanwhile, the e3W segment fared relatively better, recording the smallest decline of 5 per cent, as sales dipped to 63,415 units from 67,182 in October.

 

EV registrations in Delhi remained steady in November, with a marginal decline of less than 1 per cent. A total of 7,091 EVs were registered in November, slightly lower than the 7,141 registered in October.

 

While November’s figures signal a short-term cooling off after the festive season, the Y-o-Y growth highlights the sustained momentum in India’s EV adoption journey. Nationally, EV sales have crossed the 1.8 million mark in the first 11 months of the year, reflecting the growing adoption of electric mobility.

 

This growth received a fresh push as the Ministry of Heavy Industries (MHI) reinstated subsidies for cargo e3Ws under PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) for the remainder of the current financial year (FY25). However, the subsidy, previously halted after annual targets for FY25 were achieved, has been revised downward from Rs 50,000 to Rs 25,000 per vehicle.

 

The industry sold 80,546 units within months of the scheme’s launch. Now, the government has extended subsidies to an additional 124,846 e3Ws (L5 category), a quota originally planned for FY26, further incentivising the segment’s growth. L5 category is a classification for three-wheeled EVs that are used to transport people or goods and have a maximum speed of over 25 kmph.

 

This marks another step in the Centre’s gradual reduction of incentives across its last three EV subsidy schemes, reflecting a shift in policy as the government aims to balance support for the EV market with fiscal sustainability.

 

After FAME-II expired on April 30, the ministry introduced the Electric Mobility Promotion Scheme (EMPS) 2024, with Rs 500 crore as a bridging measure, further reducing incentives to Rs 10,000 for e2Ws and Rs 50,000 for e3Ws. FAME stood for Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India.